Gold gains on softer dollar, Fed decision awaited

Gold prices edged higher on Monday, helped by a weaker dollar, while investors awaited more clarity on trade policy between the U.S. and its trading partners, and looked forward to the Federal Reserve's policy decision due later this week.

FUNDAMENTALS

* Spot gold gained 0.2% to $3,245.01 an ounce, as of 0031 GMT. U.S. gold futures rose 0.3% to $3,252.00.


* The dollar was down 0.1% against its rivals, making gold more attractive for other currency holders.

* Last week, China's commerce ministry said the U.S. has repeatedly expressed willingness to negotiate on tariffs and that Beijing's door is open for talks.

* U.S. President Donald Trump said he will not remove Jerome Powell as Fed Board Chairman before his term ends in May 2026 while describing the central banker as "a total stiff" and repeating calls for the Fed to lower interest rates.

* Traders trimmed bets on Friday that the Fed will cut rates as soon as in June after the U.S. Labor Department reported employers added more jobs than expected in April and the unemployment rate was steady at 4.2%, signs the job market remains in balance.

* The market's focus will on the U.S. central bank policy decision and speeches by several Fed officials due this week, for insights into future monetary policy trajectory.

* Non-yielding gold acts as a hedge against global uncertainty and inflation and tends to thrive in a low-interest-rate environment.

* Chinese markets are closed for the Labour Day holiday from May 1-5 and will resume trade on Tuesday, May 6.

* Spot silver rose 0.1% to $32.02 an ounce, platinum fell 0.5% to $954.88 and palladium eased 0.2% to $951.36.

DATA/EVENTS (GMT) 1345 US S&P Global Comp, Svcs PMIs Final April 1400 US ISM N-Mfg PMI April.